Frequently Asked Questions (FAQs) - Flexible Cash ISA

1.What is a Flexible Cash ISA?  

A flexible Cash ISA allows you to withdraw money and replace it within the same tax year without affecting your annual allowance.

2.Is a Flexible Cash ISA tax-free?

Yes. All interest earned is free from Income Tax and Capital Gains Tax.

3.Who can apply for an ISA account?  

To apply for an ISA account you must be a resident of the UK for tax purposes. This includes British citizens, residents of the Isle of Man, and the Channel Islands. You must be at least 16 years old to open a Cash ISA. For Stocks & Shares ISAs and Innovative Finance ISAs, you need to be at least 18 years old. To open a Lifetime ISA, you must be between 18 and 39 years old. You should have a National Insurance number, which helps to verify your identity and residency status.

4.What are the different types of ISAs?  

The main types of ISAs include:

• Cash ISAs: Savings accounts with tax-free interest. 
• Flexible/Easy Access Cash ISAs: Savings accounts with tax-free interest. A flexible CASH ISA allows you to withdraw money and replace it within the same tax year without affecting your annual allowance.
• Stocks & Shares ISAs: Investment accounts for stocks, bonds, and other assets with tax-free capital gains and dividends.
• Flexible Cash and Stocks & Shares ISAs: A flexible ISA allows you to withdraw money and replace it within the same tax year without affecting your annual allowance.
• Lifetime ISAs: Designed for first-time home buyers and retirement, offering a government bonus on contributions.
• Innovative Finance ISAs: Involve peer-to-peer lending and other alternative finance investments.

Please note that we currently offer a Flexible Cash ISA and a Flexible Stocks and Shares ISA only.

5.What is the annual ISA contribution limit?  

For the tax year 2025/26, the annual contribution limit is £20,000. This total can be spread across different types of ISAs. More information here.

6.Can I have multiple ISAs?  

Yes you can have multiple ISAs. There's no limit to the number of ISAs you can have, but you can't exceed your annual ISA allowance of £20,000.

7.What happens if I exceed the contribution limit?  

If you exceed the ISA limit, the excess contributions may incur tax, and you may need to remove the excess amount from your ISA account.

8.Does my ISA allowance roll over?

No. Any unused allowance is lost at the end of the tax year.

9.How do you open an ISA account with XTB?  

In order to open either a Flexible Cash ISA or a Flexible Stocks & Shares ISA account, you need to create a Real account with XTB in GBP. Please note, to open an ISA account you need to be a UK resident and provide your National Insurance number.

10.How to create an account with XTB

At XTB we request clients to fill out an online application form either through the website or the mobile app. Within this application process, you will need to undertake a relevant assessment, consisting of 4 multiple choice questions. This step is essential to ensure your compatibility with the product.

Upon successful completion of the application, you will be prompted to submit Know Your Customer (KYC) documents, such as identification and proof of address, in order for us to authenticate your identity. Once the KYC process is finalised, your trading account will be established.

With the trading account active, you will gain unrestricted access to both the trading platform and the client office. This provides you with the opportunity to acquaint yourself with the software and, if desired, make an initial deposit to commence your trading activities. 

If you already have an account in GBP with XTB, please click the "Save" button and select “Flexible Cash ISA.” Enter your National Insurance number in the correct format. If you need assistance obtaining your NI number, please contact HMRC. Once you’ve filled out all the required information, you’re all set! Top up your account and your ISA. Remember, it’s your responsibility to ensure you don’t exceed the annual limit across all ISA accounts.

11.What’s the difference between Flexible/Easy-access and fixed Cash ISAs?

Flexible/Easy-access lets you withdraw anytime. Fixed ISAs lock your money away for a set period in return for a higher rate.

12.Can I replace the money I withdraw?

Only with Flexible Cash ISAs otherwise withdrawals count toward your allowance.

13.How is interest paid on a Cash ISA?

Interest is calculated daily and paid out monthly. 

14.Can I transfer my Cash ISA to XTB?

Unfortunately, we don’t currently support Cash ISA transfers to XTB, but this service is coming soon. We do however currently permit transfers into our Stocks & Shares ISA.

15.Are Cash ISAs protected?

Yes. Up to £120,000 per person, per provider under the FSCS.

16.Why can I not receive the 6% boost and free share if I am a new client?

The boosted 6% interest rate applies only to new Cash ISA or Stocks & Shares ISA clients who open an account between 1 March and 30 April. If your account was opened outside of this promotional window, the enhanced rate and promotional benefits will not apply. Existing clients receive our standard variable rate of 4% AER.

17.Do you charge an inactivity fee for ISA?  

Please note that we do not charge an inactivity fee for ISAs. 

18.Will my cash be held in a Qualifying Money Market Fund (QMMF)?y

Looking ahead, we may place client funds into one or more Qualifying Money Market Funds (QMMFs). Where this applies, your money will continue to be held in line with applicable regulations. Please see the ISA terms and conditions for more information.